Nepal sugar prices hit Rs 170 per kg as India export curbs, high global prices squeeze supply before festive season
Nepal’s sugar prices have risen to Rs 170/kg ahead of the festive season amid expensive imports and supply disruptions. The government approved 25,000 tonnes of imports at reduced duty, while transport bottlenecks and potential hoarding continue affecting availability.
Kathmandu: Sugar prices in parts of Nepal have surged to as much as Rs 170 per kg ahead of the Dashain, Tihar and Chhath festive season, with high international prices and restrictions on Indian sugar exports making imports expensive, OnlinKhabar reported.
Sugar, which was selling at around Rs 95 per kg until April, is now available at Rs 110-Rs 150 in many markets, while some consumers have reported paying as much as Rs 170. The shortage has persisted for more than two months, forcing consumers to visit multiple shops to find supplies.
Traders say imports from alternative sources have become commercially difficult. A major private importer told the publication that sugar sourced from third countries costs more than $620 per tonne, translating into an estimated landed cost of about Rs 155 per kg in Nepal even after the government’s 15% customs-duty concession.
The Nepal government approved the import of 25,000 tonnes of sugar at a reduced customs duty of 1% on September 3. The imports are being handled by state-owned Salt Trading Corporation and Food Management and Trading Company to improve availability and contain prices.
Salt Trading said it was selling sugar at Rs 105 per kg and limiting purchases to four-six kg per household. The corporation has between 6,000 and 10,000 tonnes of sugar across its outlets and expects to receive 22,500 tonnes from India. Around 2,500 tonnes have already arrived, while additional consignments are being moved through the Biratnagar border and are in transit.
Food Management and Trading Company has around 1,200 tonnes in stock and has received another 100 tonnes from India. It is selling sugar at Rs 109 per kg in Kathmandu and Rs 110 per kg in other locations, including transportation costs.
Road disruptions caused by floods and landslides have also affected sugar movement into Kathmandu, with traders forced to use smaller trucks because large vehicles cannot access some routes.
Wholesalers said availability has begun improving after Salt Trading increased supplies, although privately sourced sugar is still being sold to wholesalers at around Rs 128-Rs 130 per kg.
The wide gap between government outlet prices of around Rs 105-Rs 110 per kg and retail prices reaching Rs 170 has also raised concerns about hoarding and distribution bottlenecks.
With demand expected to rise during the upcoming festive season, authorities are under pressure to ensure that imported and government-held stocks reach ordinary retail outlets and that any hoarding or artificial supply restrictions are addressed.
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Source : ChiniMandi
